ECN 211 MIDTERM 2026 EXAM PREP SCRIPT
FULL QUESTION SET APPROVED
◉ A U.S. citizen buys a tea kettle manufactured in China by a
company that is owned and operated by U.S citizens. In which of the
following components of U.S. GDP is this transaction accounted for.
Answer: consumption and imports
◉ When an American household purchases a bottle of Italian wine
for $100,. Answer: U.S. consumption increases by $100, U.S. net
exports decrease by $100, and U.S. GDP does not change.
◉ The information below for 2008 in millions was reported by the
World Bank. On the basis of this information, which list below
contains the correct ordering of real GDP per person from highest to
lowest?. Answer: Kenya, Tanzania, Ghana
◉ Suppose that real GDP grew more in Country A than in Country B
last year.
a) Country A must have a higher standard of living than country B.
b) Country A's productivity must have grown faster than country B's.
c) Both of the above are correct.
,d) None of the above are correct.. Answer: None of the above are
correct.
◉ Which of the following is an example of human capital?
a) a student loan
b) All of the above are correct.
c) training videos for new corporate employees
d) knowledge learned from reading books. Answer: knowledge
learned from reading books
◉ Proprietary technology is technology. Answer: that is known or
controlled only by the company that discovered it.
◉ Apple founder Steve Jobs received patents on many of his ideas.
While the patents existed, his ideas were. Answer: private goods and
proprietary knowledge.
◉ The labor-force participation rate measures the percentage of the.
Answer: total adult population that is in the labor force.
◉ The adult population in the town of Shelbyville is 150 thousand. If
100 thousand people are employed and 20 thousand are
,unemployed, then the labor force participation rate is approximately.
Answer: 80%.
◉ Refer to Figure 28-3. If the government imposes a minimum wage
of $8, then unemployment will increase by. Answer: 4,000 workers.
◉ Refer to Table 28-2. The number of adults not in the labor force of
Aridia in 2012 was. Answer: 1,400
◉ Refer to Scenario 29-1 . Suppose the Central Bank of Namdia
purchases 25 million dias of Namdian Treasury Bonds from banks.
Suppose also that both the reserve requirement and the percentage
of deposits held as excess reserves stay the same. By how much
would the money supply of Namdia change?. Answer: 200 million
dias
◉ Which of the following pairs of students has a double coincidence
of wants?. Answer: Piper and Molly
◉ Refer to Scenario 29-2. Suppose the Bank of Tazi loaned the banks
of Tazi 10 million tazes. Suppose also that both the reserve
requirement and the percentage of deposits held as excess reserves
stay the same. By how much would the money supply change?.
Answer: 200 million tazes
, ◉ Who was appointed Chair of the Board of Governors in 2014 by
President Barack Obama?. Answer: Janet Yellen
◉ Higher inflation makes relative prices. Answer: more variable,
making it less likely that resources will be allocated to their best use.
◉ If the price level increased from 120 to 130, then what was the
inflation rate?. Answer: 8.3 percent.
◉ If people had been expecting prices to rise but in fact prices fell,
then who among the following would benefit?. Answer: lenders and
people holding a lot of currency
◉ If inflation is lower than what was expected,. Answer: debtors pay
a higher real interest rate than they had anticipated.
◉ On a Sunday morning, Tom sold 300 cups of coffee for a total of
$750.. Answer: The $750 is a nominal variable. The 300 cups of
coffee is a real variable.
◉ If unemployment is above its natural rate, what happens to move
the economy to long-run equilibrium?. Answer: Inflation
expectations fall which shifts the short-run Phillips curve to the left.
FULL QUESTION SET APPROVED
◉ A U.S. citizen buys a tea kettle manufactured in China by a
company that is owned and operated by U.S citizens. In which of the
following components of U.S. GDP is this transaction accounted for.
Answer: consumption and imports
◉ When an American household purchases a bottle of Italian wine
for $100,. Answer: U.S. consumption increases by $100, U.S. net
exports decrease by $100, and U.S. GDP does not change.
◉ The information below for 2008 in millions was reported by the
World Bank. On the basis of this information, which list below
contains the correct ordering of real GDP per person from highest to
lowest?. Answer: Kenya, Tanzania, Ghana
◉ Suppose that real GDP grew more in Country A than in Country B
last year.
a) Country A must have a higher standard of living than country B.
b) Country A's productivity must have grown faster than country B's.
c) Both of the above are correct.
,d) None of the above are correct.. Answer: None of the above are
correct.
◉ Which of the following is an example of human capital?
a) a student loan
b) All of the above are correct.
c) training videos for new corporate employees
d) knowledge learned from reading books. Answer: knowledge
learned from reading books
◉ Proprietary technology is technology. Answer: that is known or
controlled only by the company that discovered it.
◉ Apple founder Steve Jobs received patents on many of his ideas.
While the patents existed, his ideas were. Answer: private goods and
proprietary knowledge.
◉ The labor-force participation rate measures the percentage of the.
Answer: total adult population that is in the labor force.
◉ The adult population in the town of Shelbyville is 150 thousand. If
100 thousand people are employed and 20 thousand are
,unemployed, then the labor force participation rate is approximately.
Answer: 80%.
◉ Refer to Figure 28-3. If the government imposes a minimum wage
of $8, then unemployment will increase by. Answer: 4,000 workers.
◉ Refer to Table 28-2. The number of adults not in the labor force of
Aridia in 2012 was. Answer: 1,400
◉ Refer to Scenario 29-1 . Suppose the Central Bank of Namdia
purchases 25 million dias of Namdian Treasury Bonds from banks.
Suppose also that both the reserve requirement and the percentage
of deposits held as excess reserves stay the same. By how much
would the money supply of Namdia change?. Answer: 200 million
dias
◉ Which of the following pairs of students has a double coincidence
of wants?. Answer: Piper and Molly
◉ Refer to Scenario 29-2. Suppose the Bank of Tazi loaned the banks
of Tazi 10 million tazes. Suppose also that both the reserve
requirement and the percentage of deposits held as excess reserves
stay the same. By how much would the money supply change?.
Answer: 200 million tazes
, ◉ Who was appointed Chair of the Board of Governors in 2014 by
President Barack Obama?. Answer: Janet Yellen
◉ Higher inflation makes relative prices. Answer: more variable,
making it less likely that resources will be allocated to their best use.
◉ If the price level increased from 120 to 130, then what was the
inflation rate?. Answer: 8.3 percent.
◉ If people had been expecting prices to rise but in fact prices fell,
then who among the following would benefit?. Answer: lenders and
people holding a lot of currency
◉ If inflation is lower than what was expected,. Answer: debtors pay
a higher real interest rate than they had anticipated.
◉ On a Sunday morning, Tom sold 300 cups of coffee for a total of
$750.. Answer: The $750 is a nominal variable. The 300 cups of
coffee is a real variable.
◉ If unemployment is above its natural rate, what happens to move
the economy to long-run equilibrium?. Answer: Inflation
expectations fall which shifts the short-run Phillips curve to the left.
